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TGIF: Top 10 Traits Firms Want From New Advisor Hires

Financial planning, when it’s done right, requires a lot of different skill sets. So what exactly are firms looking for when it’s time to bring someone new aboard?

Rather than rely on some think tank or consulting firm, Financial Planning queried principals at more than 50 advisory firms to find out from the people who actually make the personnel decisions what qualities they value the most.

Turns out, many of these attributes aren’t found on candidates’ resumes.

Here’s an interactive slide show featuring the Top 10 traits advisory firms want to see from a prospective new hire.
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Personality<br><br>

Respondents overwhelming selected personality – in one form or another – as the most important characteristic they look for in a new hire. And many firms are using science to help get a better feel for this intangible quality using tools like PI Consulting Group’s Predictive Index profile to predict how a potential colleague might perform.


“It takes a special personality to be able to handle varied situations and provide a positive client experience,” said Ron Bartlett, a senior partner at Lexington, S.C.-based Bartlett Financial. “In hiring, we try to discern the answer to this question: Would we want our mother or grandmother treated as they handle their clients?”
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Integrity<br><br>

In the wake of the Madoff scandal – among others – and the corporate fraud that took place throughout the past decade, clients and would-be clients consistently rank “trust” and “accountability” among their top considerations when selecting a financial advisor. And that’s why employers are placing even greater emphasis on applicants’ character and personal history.


Rick Kahler, president of Kahler Financial Group in Rapid City, S.D., said he conducts thorough background checks and runs credit reports on all potential new hires – a tactic that’s becoming more and more common at firms of all sizes.
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Experience<br><br>

There’s no substitute for experience in any profession, particularly one that requires historical perspective and a reservoir of anecdotes gleaned over the years to help guide clients through constant change.


Respondents said experience doesn’t necessarily trump education or personality, but it’s incredibly important – particularly to firms that are growing quickly and don’t have the time or resources to spend bringing a new hire up to speed.


“You cannot learn everything in a classroom or a book,” said Brian Schmehil, a financial planning analyst at Oakbrook Terrace, Ill.-based The Mather Group. “Being able to consistently practice at a high level what you have learned is more important than years of studying and writing papers.”
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Education<br><br>

More and more universities and colleges are establishing or beefing up their specialized financial planning and advisory departments to groom the next generation of asset managers, financial planners and wealth advisors.


But hiring managers want to see more than just a college degree. They’re looking for CFP credentials and a commitment to continuing education in order to stay abreast of new products, strategies and technologies that can improve a firm’s assets under management.


“If a planner does not have a foundation of knowledge, they will be difficult to train and limit their growth potential,” said Rose Price, branch manager at Vienna, Va.-based Financial Networking Investment Corporation.
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Book of Business<br><br>

Money talks. But more important than whatever business a prospective candidate might be able to bring to a new firm is the tangible proof that he or she is capable of generating revenue on their own.


“Book of business [is most important because it] shows they are not a dependent but a productive member of an organization,” said Donald Roy, a branch manager at Merrimack, N.H.-based New England Wealth Advisors.
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Tech Savvy<br><br>

Whether it’s familiarity with Redtail or MoneyGuidePro or social media sites like Twitter, Facebook and LinkedIn, firms are increasingly looking for advisors who come to the job with familiarity and competency with these tools rather than having to spend the time and money to train new hires.


“This is a must,” said Mike Woods, president of Stocker Woods Financial in Denton, Texas. “This is our future and we have to get our minds around how we’re going to best utilize it.”


Most respondents ranked tech expertise as the third- or fourth-most important attribute in a potential new hire.
“A new planner has to at least be competent in working within our technology platforms or else we will limit the return on our investments in technology,” Schmehil said.
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Leadership Ability<br><br>

Another quality that fits into the “you know it when you see it” category. Most firms have implemented a succession planning strategy for both their near- and long-term future. It’s important to visualize every potential new hire as a long-term colleague, partner and – potentially – successor.


“We can teach financial planning expertise after a college degree base,” said Frank Finn, CFP, at Finn Zullo in Wellesley, Mass. “And everybody has to be somewhat tech savvy coming in the door. But we can’t help, nor do we want to, with motivation and self-starter attributes.”
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Compassion<br><br>

Forget how you – the advisor – handle and adjust to the inevitable volatility of the market. How do you treat your clients when the Dow falls 700 points in a day and the phones are ringing off their hooks? What about helping a client who is going through a divorce or dealing with the death of a loved one?


How a candidate managed these real-life situations in the past probably isn’t going to be found on his or her resume. So it’s important to ask if they’ve ever been through this, what they did or didn’t do to help, and then follow up with a client or two to determine whether or not the advisor offered genuine compassion and guidance.


“Perhaps the most important attribute is having the true enjoyment of helping other people try to reach their highest goals,” Bartlett said.
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Chemistry<br><br>

In every successful organization, large or small, there’s a certain energy or "esprit de corps" that develops and pushes each individual and the team as a whole to a higher level.


Early in the interview process, it’s important to feel out a candidate beyond their education and experience to see what makes them tick in their personal life, what motivates them and how they might mesh with your existing staff.


“I know it’s kind of nebulous and hard to put a finger on it,” said Gary Ruchin, founder of Vernon, Conn.-based Ruchin & Associates. “It is the interaction at the first meeting that I think begins a great relationship.”


“How do you feel about the first impression of the person?” he added. “I made a mistake (twice) because I did not trust my gut instincts.”
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Ambition<br><br>

Firms want people with new ideas that help them better serve clients, improve efficiency and generate more clients, fees and assets under management. Look for candidates who ask the right questions – not only about their own expectations and ambitions – but about your firm’s goals and objectives and can provide examples of skills and traits that mesh with your culture and vision.


But there’s a fine line between ambition and arrogance. One respondent mentioned a story about a top producer who had a fantastic interview but then blew it by being exceptionally rude to the wait staff at dinner. He didn’t get the job.


“[I look for someone with] fire in the belly for planning,” Kahler said. “They need to demonstrate passion for planning." Several respondents said they view membership in industry organizations such as the FPA or NAPFA as a sign of a candidate's passion and ambition.
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